“ … Here is another one. A change in what Human nature will allow for government. "Careful, Kryon, don't talk about politics. You'll get in trouble." I won't get in trouble. I'm going to tell you to watch for leadership that cares about you. "You mean politics is going to change?" It already has. It's beginning. Watch for it. You're going to see a total phase-out of old energy dictatorships eventually. The potential is that you're going to see that before 2013.

They're going to fall over, you know, because the energy of the population will not sustain an old energy leader ..."
"Update on Current Events" – Jul 23, 2011 (Kryon channelled by Lee Carroll) - (Subjects: The Humanization of God, Gaia, Shift of Human Consciousness, 2012, Benevolent Design, Financial Institutes (Recession, System to Change ...), Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Nuclear Power Revealed, Geothermal Power, Hydro Power, Drinking Water from Seawater, No need for Oil as Much, Middle East in Peace, Persia/Iran Uprising, Muhammad, Israel, DNA, Two Dictators to fall soon, Africa, China, (Old) Souls, Species to go, Whales to Humans, Global Unity,..... etc.)
(Subjects: Who/What is Kryon ?, Egypt Uprising, Iran/Persia Uprising, Peace in Middle East without Israel actively involved, Muhammad, "Conceptual" Youth Revolution, "Conceptual" Managed Business, Internet, Social Media, News Media, Google, Bankers, Global Unity,..... etc.)

Monday, January 19, 2009

SG turns to own cash to fund projects

Ika Krismantari, The Jakarta Post, Gresik, East Java | Mon, 01/19/2009 5:58 PM  

Amid the global credit crunch, the country's largest cement producer PT Semen Gresik (SG) has dropped plans to use loans to finance the bulk of its expansion projects this year, turning instead to using its own cash. 

The publicly listed company's president director Dwi Soetjipto said last Friday that out of US$371 million to be spent on capital expenditure this year, the company will use up to Rp 2.5 trillion ($227 million) of internal cash to finance expansion, or about 61 percent of total requirement. 

"We will rely as little as possible on external funds to minimize risks amidst the adverse global financial conditions," he said, adding that initially the proposed ratio of internal to external financing had stood at 30 to 70 percent, respectively. 

He explained that as of September last year, the company had generated Rp 3.5 trillion in cash reserves, big enough to help fund expansion. 

"We may find the rest in the third and fourth quarters, but we are still figuring out where we will find it," Dwi said. 

"We will study all options, bonds or bank loans, but we have yet to decide," 

The global financial conditions also encouraged SG to scale back its investment requirements for power plant projects from $573 million to $114 million. 

The latest data from the company shows that it aims to spend a total of $1.25 billion in capital expenditure for 2008 to 2014, a downward revision from the $1.4 billion set previously. 

The company also prefers to use its internal cash to fund $555 million, or about 44 percent of total funds needed, while $696 million will come from debt issuance. 

The company signed a loan agreement worth Rp 6.6 trillion at the end of the year with the country's largest bank, Bank Mandiri, as part of SG's efforts to realize its expansion program. 

The 2008-2014 expansion plan is aimed at significantly boosting the production capacity of SG's plants - both from existing and new ones - and the construction of power plants. 

For 2009, capital expenditure will be allocated for plant optimization ($49 million), capacity expansion ($203 million), power plants ($23 million), corporate restructuring ($10 million), equipment replacement ($20 million) and others (47 million). 

The company has targeted to start the construction of a new plant in Pati, Central Java with a capacity of 2.5 million tons in the second semester of the year. 

The value of the project is estimated at $413 million. Also this year, the company will optimize production capacity in its existing plants to reach 19 million tons by the end of the year. 

Dwi also said the company expects a 2 percent to 3 percent growth in demand this year, as the economic slowdown erodes demand. This is way below the 8 percent growth achieved in 2008. 

He hoped the low demand from the domestic market would be compensated for with higher exports, which this year are expected to reach 2 million tons, or double from last year's figure of 1 million tons. 

SG exports its products to South Asia, Africa and Middle Eastern countries. 

As of November of last year, the company controlled 44 percent of the domestic cement market, making it the largest producer and market leader. 

The company is 51.09 percent owned by the government, 24.01 percent by Blue valley Holdings - a subsidiary of business conglomerate Rajawali Group - and 24.9 percent by the public. 

SG estimates that company gross revenue in 2008 grew by 20 percent to Rp 11.4 trillion, as compared to the Rp 9.5 trillion posted in 2007. Net profits are expected to have grown by 20 percent, Dwi said. 

In 2008, SG posted net profits of Rp 1.9 trillion, as of the end of September. The company's full year net profits reached Rp 1.8 trillion in the year before.

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